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Job Cut Announcements Climbed 65% in July

Job cut announcements jumped 65 percent to a record level in July, led by telecommunications, computer, electronic and industrial companies, a report by the outplacement firm of Challenger, Gray & Christmas said today.

Announced job cuts in July hit 205,975, up from 124,852 in June. July's total was more than three times the level of job cuts recorded in the same month last year, the report said.

''Job cuts tell us as much about the economy's future as they do about the present. Companies are looking at their staffing needs for the balance of 2001 and the numbers do not present a very positive picture,'' said John Challenger, chief executive of Challenger, Gray & Christmas. The survey began in 1993.

For the first half of 2001, United States companies said they planned to cut 777,362 jobs, more than three times the number announced in the first six months of last year.

The telecommunications sector overtook the technology sector in July in recording the highest number of job-cut announcements. With 44,908 job cuts announced in July, the total number of layoffs announced in the sector hit 175,350 for the first seven months this year.

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Technology companies announced 26,321 layoffs in July bringing the total to 101,044 for the year to date.

''This is a very, very big surge in layoffs. Basically it says two things: One is that the employment situation is not going to turn around in the near future and will continue to get worse during summer months. It also means that claims will edge higher,'' said Eric Green, chief economist with BNP Paribas, referring to claims for jobless benefits.